A column about history, culture, policy, and things in between.
The immutability of economic law has been an occasional theme of this blog. Given the inevitable impact of the policy and legislation that has held sway in our State for the last many years, and the monstrosity that is the current two year budget, this is a reality that will become far more evident in the next ten years.
Director Steven Spielberg imprinted the Great White shark upon our national consciousness with his 1975 movie, JAWS. The film generated a fascination with the beasts, and one of the things we learned is that they are creatures of ceaseless motion; never sleeping and always consuming. Indeed, should they sleep or stop - they die.
Like the great white, capital never remains at rest. It is in constant motion, and given today's sophistication of communications and financial vehicles, it knows nothing of the bounds which once contained it. It is in constant search for its next opportunity, and those who own it have but one objective - to maximize their return upon it. And those who manage it are under no illusions as to what the owner's objective is.
The recently passed Wisconsin State Budget is a vehicle that will send the great white shark of financial capital looking for feeding waters well beyond the depths of our State. And though there is a lag period, another inexorable law of economics is that jobs follow the deployment of capital.
Our governing political class in Madison has little concept of how capital is sought, gathered, formed, and deployed. And even worse, it sees no reason why it might be important to HAVE such an understanding.
Our Governor and legislature are powerless to modify the patterns and behavior of the Great White shark. They are equally powerless to change the immutability of economic law.
Unfortunately - they are all too capable of impacting the disposition of capital.